sion granted to an American citizen,
and at the same time annulled the charter. The concessionary, who had
embarked his fortune in the enterprise, having exhausted other means of
redress, was compelled to invoke the protection of his Government. Our
representations, made coincidently with those of the British Government,
whose subjects were also largely interested, happily resulted in the
recognition by Portugal of the propriety of submitting the claim for
indemnity growing out of its action to arbitration. This plan of
settlement having been agreed upon, the interested powers readily
concurred in the proposal to submit the case to the judgment of three
eminent jurists, to be designated by the President of the Swiss
Republic, who, upon the joint invitation of the Governments of the
United States, Great Britain, and Portugal, has selected persons well
qualified for the task before them.

The revision of our treaty relations with the Empire of Japan has
continued to be the subject of consideration and of correspondence.
The questions involved are both grave and delicate; and while it will be
my duty to see that the interests of the United States are not by any
changes exposed to undue discrimination, I sincerely hope that such
revision as Will satisfy the legitimate expectations of the Japanese
Government and maintain the present and long-existing friendly relations
between Japan and the United States will be effected.

The friendship between our country and Mexico, born of close
neighborhood and strengthened by many considerations of intimate
intercourse and reciprocal interest, has never been more conspicuous
than now nor more hopeful of increased benefit to both nations. The
intercourse of the two countries by rail, already great, is making
constant growth. The established lines and those recently projected add
to the intimacy of traffic and open new channels of access to fresh
areas of demand and supply. The importance of the Mexican railway system
will be further enhanced to a degree almost impossible to forecast if
it should become a link in the projected intercontinental railway.
I recommend that our mission in the City of Mexico be raised to the
first class.

The cordial character of our relations with Spain warrants the hope
that by the continuance of methods of friendly negotiation much may be
accomplished in the direction of an adjustment of pending questions and
of the increase of our trade. The extent and